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19-04-23

UAE Banks Witness 8.5 percent Increase in Total Capital, Reserves

(MENAFN) According to the Central Bank of UAE's monthly report on monetary, banking, and financial developments, UAE banks witnessed an 8.5 percent increase in their total capital and reserves to 438.6 billion dirhams (USD119.5 billion) in January 2023 from 404.3 billion dirhams during the same month last year. The report further noted that the aggregate capital and reserves of banks in Dubai touched 211 billion dirhams in January 2023, showing a 9.5 percent rise from the same period last year. Meanwhile, Abu Dhabi banks' capital and reserves saw an 8.9 percent increase reaching 194.9 billion, while banks in other emirates totaled 32.7 billion dirhams in the first month of this year.

In the fourth quarter of 2022, the UAE banks' capitalization amounted to 429.7 billion dirhams, showing a 4 percent increase over the year-ago period. The report further stated that local banks' capitalization, which comprised 86 percent of the total, stood at 379.3 billion dirhams in January 2023. On the other hand, local banks' equity grew 8.31 percent from 350.2 billion dirhams the year before. Foreign banks made up 13.5 percent of the total capital and reserves and amounted to 59.3 billion dirhams at the end of January 2023, an increase of 9.6 percent from the year before.

The report also revealed that the value of UAE banks' assets, including acceptance certificates, increased to 3.66 trillion dirhams in January, recording 11.5 percent growth over 3.29 trillion dirhams recorded during the same period last year. According to the report, total bank credit increased 4.1 percent annually to 1.87 trillion dirhams in January 2023 compared to roughly 1.8 trillion dirhams in January 2022.

Moreover, the report stated that the overall bank deposits climbed 19.2 percent year-on-year to 2.23 trillion dirhams at the end of January, which is an increase of 358.9 billion dirhams compared to 1.87 trillion dirhams in the same period last year. Compared to the 2.22 trillion dirhams at the end of last December, the CBUAE reported that bank deposits increased monthly by 0.5 percent. The increase was attributed to the growth in resident deposits, which increased by 0.8 percent due to a rise in government and private sector deposits of 1.7 percent and 1.3 percent, respectively.

Overall, the report indicated that UAE banks have shown resilience and growth despite challenging economic conditions. The increase in capital and reserves is a positive sign for the banking sector, indicating that banks are well-positioned to weather future economic challenges. The growth in assets, credit, and deposits also reflects the overall strength of the banking sector and its ability to support economic growth in the UAE.

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